POLITICS

Canam sees big business opportunity from Montreal bridge, Ontario budget

04/24/2015 05:39 EDT | Updated 07/23/2015 08:59 EDT
ST-GEORGES, Que. - Structural steel supplier Canam Group Inc sees a big business opportunity if Montreal's new Champlain bridge is made mainly with steel.

Chief executive Marc Dutil said Friday that the consortium selected to build the multibillion-dollar structure has a choice of materials to keep the project on budget and schedule.

"I am a steel guy and I hope that we will be able to sing its praises and win (contracts)," he said during a conference call.

Dutil estimates that between 10,000 and 45,000 tonnes of steel will be needed to complete the bridge, which is slated to open by the end of 2018.

Even though the Signature Group was selected as winning consortium, details including the cost of construction — estimated to range between $3 billion and $5 billion — will only be disclosed when the contract is officially signed this summer.

Dutil also anticipates the company could see positive impacts from this week's Ontario budget, which outlined plans to spend heavily on infrastructure.

Meanwhile, Canam (TSX:CAM) said it's benefiting from a stronger U.S. dollar and the continuing recovery in non-residential construction in the United States, the source of a majority of its sales.

The Quebec-based company's first-quarter revenue jumped 29 per cent to $309.1 million from $239.3 million in the same 2014 period.

Net income was $4.4 million or 10 cents per share for the period ended March 28, up from $500,000 or one cent per share in the first quarter of 2014.

On the Toronto Stock Exchange, Canam's shares closed at $13.32, up 52 cents or 4.06 per cent on Friday.